ISSUE NO.

69 — August 2005

PAH NEWS PI
A Basic Primer on Mine Design
PHILIPPINES OPEN FOR MINING

PANTANAL ENVIRONMENTAL Introduction feasible mine design (acceptable

PROTECTION DISCUSSED mining method).
In June 2005, we presented a Pincock
PERU APPROVES MINE CLOSURE
REGULATIONS Perspectives on building a successful Pit Optimization
mine model. The progression of mine
XSTRATA BUYS 19.9% STAKE IN
models goes from geologic model Pit optimization techniques were
FALCONBRIDGE
(geology & structure) to mineral developed in the 1960s and 1970s.
model (assay or grade) to a full mine The “floating cone” and Lerchs
C A L E N D A R
model (economic). Once you have a Grossmann techniques are the
Gold & Precious Metals good model the next step is to standard optimization pit limit design
Investment Conference develop a mine design. Often the algorithms. Optimization tools make
September 7–8, 2005
first step of design is optimization by pit design easier, but they do not
The Mirage
Las Vegas, Nevada using a “floating cone,” or Lerchs- replace pit design. These are tools
e-mail: iiconf@iiconf.com Grossmann (LG) algorithm to develop that start with a mine economic
an optimum pit shell which is then model predicated on block value,
XXVII Convencion Minera -
EXTEMIN 2005 used as the basis for the ultimate pit required slope angle, and other
September 12–16, 2005 design. For the purposes of this factors, and ultimately will identify
Arequipa (TECSUP)
discussion, references will be to open those blocks which can be mined or
Lima, Peru
e-mail: msovero@iimp.org.pe pit mining although many of the should be left in place. Most
same design factors affect algorithms employ a break-even
Exposibram XI Brazilian Mining
underground mining only in a slightly analysis for the last block mined.
Exhibit
September 20–23, 2005 different way. Under no circumstance is the output
Exhibition Pavillion of Expominas from a pit optimization analysis a
Minas Gerais, Brazil
With all the software tools available reserve.
e-mail: singular@aul.com.br
to the mining engineer, some consider
2005 Heavy Minerals Conference
mine design to be an afterthought. Design Packages
October 16–19, 2005
Sawgrass Marriott Resourt
But, as a good engineer knows, and
Ponte Vedra Beach, Jacksonville, the SEC reiterates, to have a proven Many mine planning software
Florida
and probable reserve requires a packages now have ramp packages
e-mail: meetings@smenet.org

Copyright 2005 by Pincock, Allen and Holt, a division of Runge Inc. All Rights Reserved.
PHILIPPINES OPEN FOR MINING
and pit design tools. These tools leave ore in the bottom due to
The Philippines Chambers of Mines is
hoping that a Supreme Court decision can work from a variety of space limitations.
earlier this year ruling that foreign methods (i.e., bottom-up, top-
owned companies could hold 100% of down). Each method has some Contour Maps
large mining projects will encourage
short-comings and an iterative
resource companies to invest in
Philippines mining projects. Previously, process is suggested. For Contour maps based on block
foreign miners had been on their own in example, the pit optimization models can sometimes be
dealing with numerous issues that output can provide a contour misleading. Many people do not
would emerge in trying to get a project
map which often is a good realize it but many software
up and running. The state is now
starting point for a design. For a packages will provide a pit design
taking a proactive role in ensuring
success. The Philippines Government bottom-up design you develop a contour map based on mid-
has appointed “account officers” for 59 contour around the lowest points. Mostly this happens
of the most advanced projects to assist bench elevation and project it because a block model has one
the owners in progressing their projects
upward with ramps. The ideal specific mid-point. This means
through the various stages. While the
miners are rewarded for their labors, at pit design often would exit at that the line that looks like the
least 50% of a project’s revenues are the lowest possible elevation, start of a ramp where the ramp
seen as being beneficial to the especially if it is on a hillside. The exits the pit could actually be in
Philippines.
issue with a bottom-up design is another location at a different
PANTANAL ENVIRONMENTAL that many times it will generate a elevation. For example, say a
PROTECTION DISCUSSED ramp up to the highest elevation ramp exits at a 6015 elevation,
Governmental delegations from Brazil, and miss the opportunity to exit has an 8 percent grade, the
Bolivia, Paraguay, Argentina and
the pit at a lower elevation. model is based on 50 ft block
Uruguay and NGOs are discussing
Likewise, a top-down design may dimensions (50 ft x 50 ft x 50 ft),
measures for the environmental
protection of the Pantanal area. The
delegations are meeting to evaluate the
impact of the transport, mining, energy
and agriculture sectors on what is the
world’s biggest swampland. The . . . . . . .
Pantanal is an open swampland
bordering Bolivia and Paraguay, and is
bigger than France.
. . . . . . .
PERU APPROVES MINE CLOSURE
REGULATIONS
Peru’s government has approved . . . . . . .
regulations spelling out procedures for
complying with and enforcing the mine
closure law passed by congress in 2003 . . . . . . .
and updated in 2005. Mining
operations must now present a mine
closure plan within a year to the . . . . . . .
Ministry of Energy and Mines (MEM)
and provide a financial guarantee to
cover the closure costs. The
government’s next step will be to This is a depiction of what a contouring package will do to the pit bottom
approve regulations to cleanup when it contours the block mid-points; note that the lowest block has only
historical environmental liabilities left one point which cannot be contoured.
over from past mining activities.

2

and the bench datum is 6000
elevation. The last contour will
be the 5975 midpoint, labeled as
the 5950 bench, which could be
500 ft in distance in plan from
where the actual ramp needs to
begin at the 6015 elevation.
Some software packages avert
this problem by looking at crest
and toes and designing actual
ramp segments.
The other problem with contour
maps is understanding what is
being contoured. For example,
using the same block dimensions
as above, a single high grade
block in the bottom of the pit
may be mined by the optimization
method, but not show up on a
contour map - since a single point
(the block mid-point) cannot be
contoured. Ideally, the
. . . .
. . . .
. . . .
. . . .
. . . .
This is what you thought you were getting when you ran the pit optimization.
contouring routine would pick the
bottom four corners of the block
you want and contour around it,
but more than likely, it contours
the mid-point and could be off by
one-half of a block width in width
on either side and one to one and
one-half blocks off in height. This
is depicted in the drawings below.
This problem can be averted with
interactive computer design
software where block plots are
shown on each level as the pit is
designed, so the user can choose
which blocks to include and which
to exclude.
DESIGNING FOR SUCCESS
Basic Rules for Mine Design
The first rule of mine design is that
all cuts must have access for mine
. . .
. . . a brownish red and can be found in
. . . streak. Its crystals are prismatic,
. . . strength, and non-corrosive metal,
. . . is as a paint pigment. It replaced
33
XSTRATA BUYS 19.9% STAKE IN
FALCONBRIDGE
Swiss resources group Xstrata has
acquired a 19.9% state in
Falconbridge, a copper, nickel and zinc
producer. The acquisition will allow
Xstrata to make a future bid for the
entire company, if it decides to do so,
without facing interference from rival
bidders and will provide significant
exposure to nickel for the first time.
Falconbridge, formed from a recent
merger with Noranda, holds interest in
the Antamina copper-zinc mine in
Peru, the Collahuasi and Lomas Bayas
copper mines and the Altonorte copper
smelter in Chile, and the Falcondo
ferronickel plant and mines in the
Dominican Republic. Xstrata processes
coal, alloys, copper and zinc in the
Americas, Europe, Africa and Australia,
and has interest in the Alumbrera
copper-gold mine in Argentina.
Minerals Corner —
Rutile TiO2
Rutile, a major mineral source of
the element titanium, is typically
about 60% titanium and 40%
oxygen. It can have some iron
present, sometimes up to 10%.
Rutile is one of the most common
titanium minerals. Rutile is typically
other shades excluding black. It has
a metallic luster and a pale brown
vertically striated or furrowed.
Because of its lightweight, high
Rutile is commonly used in
aerospace, automobiles, sports, and
medicine. However, its primary use
lead as the most common paint
pigment used in the manufacture
of paint. Other uses include a
coating for tiles, and it is used to
treat the air, both to preserve fruits
and vegetables and to remove
pollution.
equipment. If the equipment
cannot get to the cut, it cannot
be mined. This is especially
important on hillsides where the
uppermost cuts are very narrow.
Often additional barren material
must be excavated to get
sufficient room for the
equipment. These access ramps
need to be included in the
design. If the ramps are
internal to the pit design, they
should still be shown as
temporary ramps that are mined
out as the cuts advance. Ideally
the interactive design software
has a “shadow line” that
projects a minimum operating
width for design so upper
hillside cuts have sufficient
width, even if they require over-
excavation.
The second rule is that the
design should not compromise
the geotechnical stability. If a
45 degree slope is called for, the
design should not over-steepen
a cut just to get access. The
Pincock, Allen & Holt is a consulting and engineering firm serving the international mineral resource industry. Your comments and suggestions are always
welcome. Contact Pincock, Allen & Holt • 165 S. Union Blvd., Suite 950, Lakewood, Colorado 80228 • TEL 303.986.6950 • FAX 303.987.8907 •
www.pincock.com. Pincock Perspectives is published as a free information service for friends and clients. Information for News Pix is paraphrased from various
sources; references available upon request.
ideal interactive design software
projects crests and toes up or
down based on slope
requirements so that
geotechnical requirements are
not violated.
The third rule is to know and
understand the deposit. By
working through multiple
floating cone optimizations at
multiple product prices, you can
get a good indication of which
areas are mined and in what
sequence. Most early phases are
based on mining the highest
grade first. Looking at multiple
pit shells will give an indication of
where to place ramps, where a
ramp should exit the deposit, and
where phases would make logical
sense for operational efficiency.
The last rule is to design to
maximize operating efficiency.
Cuts that are too narrow restrict
access and cause operational
delays. Although the equipment
may be able to operate in a 100’
4
4
width, allow at least two times
this width for ease of operation
if possible. Drilling and blasting
operations also require
operating room, often on the
same bench as excavation.
Minimum widths should be
factored into the pit design so
there is sufficient room to turn
around in the bottommost cuts.
In summary, we stress the need
to understand the capabilities
and limits of your mine design
tools. Understand what comes
out of your contouring
packages. Make sure you have
room for ramps, internal and
external, and access into all
cuts. Now, back to the drawing
board!
This month’s article was
provided by Rick Lambert, P.E.,
Manager of Mining Engineering
& Geological Services
rick.lambert@pincock.com